Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Solution and Analysis
Intro
Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting info, processing details and communication services. Significant service segments of the company include; books, regulars, consultancy and distribution. The business has a large item portfolio and its major items include books, periodicals, online media, exhibitions, research reports and so on. Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Help has actually become a specialized details provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Analysis in particular. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Analysis has particular strengths that can be utilized to lower the threats, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position permits the business to consider numerous advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Analysis as well, but the development might be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually presented particular hazards to Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. However, the overall financial performance of the company could be evaluated by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Help is growing and the business is rather efficient in drawing in a a great deal of consumers at a potential cost.
Along with it, the 2nd graph which reveals the yearly growth in the Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Analysis total possessions, reveals that the business is rather effective in adding value to its assets through its incomes. The development in possessions shows that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis regarding the distribution of total revenues of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Cypress Sharpridge Raising Capital In A Time Of Crisis Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the declining market growth. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should first collects the information related to the consumer demand, the possible markets, the federal government regulations and the data associated with the competitors provided in the market. After that, the business ought to choose one possible section for its preliminary offering. It needs to gather research study that how it could distinguish its digital publishing from the existing rivals' products. The actions above the company must go for the initial offering. If the initial offering shows a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a threat to the company's long term presence, but the situation can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
